Dairy farm project 8 buffaloes

Dairy farm project 8 buffaloes

murrah buffalo project

Project report for eight graded murrah buffaloes dairy farm

Dairy farm project 8 buffaloes is based on following assumptions

1-Freshly calved murrah  female buffaloes in 1st or 2nd lactation will be purchased in two batches of four animals each/batch  at an interval of 5 to 6 months.2-Availability of 2 acres of land  for fodder cultivation is prerequisite for the project,3-Dung produced will be utilized as Manure for fodder cultivation.4-Cost of rearing calves not considered as it will be repealed by their sale value57In case of death of adult animal new buffalo  will be purchased from insurance claim money.6-Heifers will be used as replacement stocks7 The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.

Economics of dairy farming with 8 Graded murrah  buffaloes
Project cost and bank loan Cost. In Rs.
Capital cost
Low cost Shed for 8buffaloes  50sq.ft/Buffalo @150/sqft 60000
Low cost Calf pen for 8 calves 20 sq.ft./calf @150/sq.ft. 24000
Cost of 4 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @52000/buffalo including transportation 416000
Cost of dairy appliances @ 1000/buffalo 8000
Cost of one hand operated chaff cutter 10000
Total 518000
Cost of feed for first batch of  four   buffalo for one month as per feed chart 15400
Cost of insurance  first   animals @5% of animal cost 10400
Cost of fodder cultivation in 2 acres of land for first session 12000
Cost of medicine vaccine, electricity for  first  four  buffaloes 4200
Total recurring expenditure 42000
TOTAL PROJECT COST 560000
Margin money 10% of project cost 56000
Bank loan 90% of project cost 504000
CASH FLOW ANALYSIS
Particulars Project period
1 2 3 4 5 6
Feeding during lactation period vide yearly lactation days and feed cost as per chart 223600 192400 239200 218400 218400 239200
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 26400 13800 62400 72000 72000 62400
Medicine vaccine veterinary aid 8000 8000 8000 8000 8000 8000
Insurance @5% of animal cost /year 20800 20800 20800 20800 20800 20800
Cost of fodder cultivation 48000 48000 48000 48000 48000 48000
other miscellaneous expenditure 20000 20000 20000 20000 20000 20000
Total 346800 303000 398400 387200 387200 398400
INCOME
Sale  of milk @Rs.35/liter during lactation days 602000 521500 644000 588000 588000 644000
Sale of gunny bags 1020 1260 1220 1160 1160 1220
Manure will be utilized in own farm
Value of closing stock of  8 buffaloes(Depreciation on animal cost @10%/year) 166400
Value of building

(Depreciation on building@10%/year)

33600
Value of equipment

(Depreciation on equipment @15%/year)

1400
Total income 603020 522760 645220 589160 589160 603020
Gross profit 256220 219760 246820 201960 201960 448220
Calculation of BCR and IRR
1 2 3 4 5 6
Capital Costs 518000
Recurring Cost 346800 303000 398400 387200 387200 398400
Total Costs 864800 303000 398400 387200 387200 398400
Benefit 603020 522760 645220 589160 589160 603020
Net Benefit -261780 219760 246820 201960 201960 204620
Financial indicators Estimated value Preferred value
Net Present Worth (NPW 405167.48 Should be+ve
Benefit Cost Ratio(BCR) 1.22:1 >1
Internal Rate of return (IRR) 37.629 >15%
Debt Service Coverage Ratio 2.075 >1.5

Loan Repayment  for  eight graded murrah buffalo:- Repayment of loan will start after grace period of  six months. Total loan repayment period is 6-7 years. Details of  monthly installment, interest payment, principal payment and balance  is given in repayment schedule for  eight graded murrah.

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